Monthly-Stock-Portfolio

Elite Wealth Ltd. released Monthly stock portfolio January 2021. Our stock market research analysts always recommends best stock picks to our clients for investing in share market. There are 10 best stocks in this month, for your better portfolio which are given below:

Monthly Stock Portfolio January 2021

Company Recommendation CMP (Rs) Target (Rs) Upside
(%)
Time Horizon
Reliance Industries Buy 2000 2200 10 1Month
Bharti Airtel Buy 513 560 9 1Month
Dabur India Buy 533 560 5 1Month
Amber Enterprise Buy 2355 2500 6 1Month
Escorts Buy 1251 1400 12 1Month
Bayer Crop Science Buy 5525 6000 9 1Month
Va Tech Wabag Buy 206 250 21 1Month
Endurance Technologies Buy 1327 1450 9 1Month
ICICI Securities Buy 463 520 12 1Month
Chemcon Spec. Chemicals Buy 455 550 21 1Month

**We will consider buy  prices as on 1st Jan 2021 at 10pm for every buy call and in case of accumulation we will average out price.

Weightage of Investment (10 Lakh)

Company Amount (Rs) Weightage (%)
Reliance Industries 150,000 15%
Bharti Airtel 100,000 10%
Dabur India 100,000 10%
Amber Enterprise 100,000 10%
Escorts 120,000 12%
Bayer Crop Science 90,000 9%
Va Tech Wabag 80,000 8%
Endurance Technologies 80,000 8%
ICICI Securities 100,000 10%
Chemcon Spec. Chemicals 80,000 8%
Total 1000,000 100%

Note:- Dear Investor in this highly volatile situation if your portfolio closes below 5% (On daily basis) then you can square off your respective position.  
                        

Reliance Industries Ltd:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
2000 RELIANCE/500325 1312228.00 Refinery 6339.20 10.00 639.47 1.09

 

Reliance Industries Limited is engaged in refining, petrochemicals, oil and gas, organized retail, digital services and others. RIL achieved consolidated revenue of Rs 128,385 crore in Q2FY21 as compared to Rs 100,929 crore in the trailing quarter. The increase in revenue was primarily due to higher price realizations in O2C segment, strong recovery in Retail operations and sustained subscriber addition with improvement in ARPU in Digital services business. ARPU during the quarter was of ₹ 145.0 per subscriber per month as against ₹ 140.3 per subscriber per month in the trailing quarter. Over the last five years, RIL has seen a huge transformation from being an energy company to becoming a market leader in both the Digital and Retail space. While H1 2020 was dominated by Jio, RIL turned its attention towards its retail division in H2 2020. A similar continuous fundraise was seen at Reliance Retail too, with a majority of Jio’s investors lining up to fund what would become India’s largest retail operator in the year. Future Group stores stand to bring in additional business worth $5.5 billion in grocery alone for Reliance Retail. the deal gives RIL more bargaining power over FMCG players, vendors, and logistics partners, along with easing its entry into smaller towns.

Bharti Airtel Ltd:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
513 BHARTIARTL/532454 281479.47 Telecom 2727.78 5.00 108.77 0.78

 

Bharti Airtel Limited is a leading global telecommunications company with operations in 18 countries across Asia and Africa. In India, the company’s product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services etc. Bharti Airtel had over 423 million customers across its operations at the end of March 2020. Bharti Airtel continued adding subscribers to its network in the month of October, taking its user base to 330.29 million. The company had 3.7 million new users in October, according to the monthly subscription data by the Telecom Regulatory Authority of India (TRAI). In September, Bharti Airtel was the biggest gainer in terms of users with 3.8 million subscriber additions. Bharti Airtel holds the highest ARPU in Industry at Rs. 162. In Q2 FY21, 3 telcos combined data traffic was up 2% QoQ and 30%YoY led by Bharti AIrtel. Bharti’s data traffic was up 6% QoQ and 58% YoY. Data traffic share gains for Bharti Airtel will likely continue because even as its 4G base increased to 153 mn, 4G penetration is still at 52% of its 294 mn total mobile subscribers.

Dabur India:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
533 DABUR / 500096 95378.85 FMCG 176.74 1.00 40.33 0.58

 

Dabur India Ltd is the largest Ayurvedic and natural health care company in the country with a portfolio of over 400 products. Dabur Consolidated revenues grew by 13.7% in Q2FY21 led by strong 17.9% growth in India business. India FMCG business grew by 19.8% supported by 16.8% volume growth. The India business FMCG growth was backed by 70.8% growth in health supplement (Chyawanprash grew 2x, Honey double digit growth), 56.1% growth in OTC products & 26.4% growth in Ethical segment. Oral care, Shampoos & Skin & Saloon (Including Sanitizers products) also witnessed splendid growth of 24.2%, 17.8% & 38.1% respectively. Key factor driving the Indian ayurvedic products market is increasing popularity of natural and herbal medicines and their benefits among the consumers. Factors such as rising health concerns and awareness about the side-effects of western medicines is further driving the consumer preferencefor Ayurvedic products in the country. Dabur invested ahead of the curve in expanding its rural coverage, which helped it drive growth even during the slowdown. It increased its rural network to cover 52,298 villages by end of FY20, up from 44,068 villages in March 2019. We believe the opportunity in immunity boosting products in COVID-19 is more structural & leadership position in Chawayanprash& Honey works as advantage for Dabur India.

Amber Enterprise :

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
2355 AMBER/ 540902 8015.06 Consumer Durables 33.69 10.00 445.57 0.80

 

Amber Enterprises designs and manufactures air conditioners and components for leading consumer durable brands. Amber’s diversified portfolio includes RACs’, RAC & Non RAC components and air conditioning solutions for railways, metros, Defence, and bus and commercial segment. Company is managed to perform well in Q2FY21 despite of lockdown in multiple states. In Q2FY21 Company’s Consolidated revenue stood at Rs.408 Cr and EBITDA stood at Rs.22 Cr which implies marginally dip in EBITDA margin to 5.4% as against 6.2% in Q2FY20. Components and Mobility Application business has contributed 64% in Q2FY21 as compared to 50% in Q2FY20. On the back of Increasing Retail & OEM demand, Company anticipate business should achieve normalcy in H2FY21. The Governments’ “MAKE IN INDIA” initiative will boost local & Domestic Manufacturing of the completely build units as well as components for RAC’s in India as import’s of Air conditioner with refrigerants is ‘prohibited’. Rs. 4000 Cr + of RAC were being imported in India out of which 70-75% consisted of Completely Build Units (CBU’s) with refrigerants and remaining being WAC’s/IDU’s & ODU’s.

Escorts:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
1251 ESCORTS / 500495 17056.57 Automobile 134.83 10.00 330.69 1.20

 

Escorts is a leading farm machinery player domestically with 11% tractor market share. It derives 77% of its topline from the tractor segment 15% from construction equipment 8 from and Railways segment. We expect ongoing positivity in the domestic tractor industry to continue over the medium-term courtesy strong rural cashflows (remunerative MSPs, record Kharif production, healthy groundwater levels, continued government support). The industry, as a whole, is seen posting double-digit growth for FY21E. Post acqusition of 10% stake in Kubota Corporation it is also well poised to penetrate further the export markets, with Escorts’ own tractor capacity set to increase to 1.5 lakh units per annum from 1.15 lakh units per annum at present. Strong demand offtake is set to be accompanied by a rise in blended profitability courtesy tractor EBIT margins improving to 17-18% on a sustainable basis, going forward, riding on mix improvement and cost actions. Pick-up in infrastructure & construction activity along with revival of government spends also boost the outlook for Escorts’ CE division.

Bayer Crop Science:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
5525 BAYERCROP/506285 24653.88 Agro Chemicals 44.94 10.00 563.38 0.5

 

Bayer CropScience Limited is engaged in the manufacturing of insecticides, fungicides and herbicides. The Company operates through Agri Care segment. It offers crop solutions for various crops, such as cotton, fruits, millet, mustard, pulses, rice, soybeans, sugar cane, vegetables and wheat. Bayer also offers various pest management solutions, such as Professional Pest Management for household/ structural pests and Vector Management for pests that pose a threat to public health. Bayer CropScience’s standalone net profit jumped 32.3% to Rs 224.60 crore on 2.6% increase in net sales to Rs 1,381.60 crore in Q2 September 2020 over Q2 September 2019.Bayer Crop’s acquisition of Monsanto India resulted into a bigger entity in agro-chemical and seed. This will unlock the growth potential of Indian agriculture as a global producer and exporter of food, feed and fiber. Further, the merger has resulted in cost efficiencies and revenue synergies and would result in incremental earnings growth for Bayer Crop. The company enjoys a unique position in the domestic agrochemical space due to its ability to offer new innovative products. We believe agrochemicals segment is least affected due to any natural calamity as food cultivation remains at the heart of any activity in the country. So impact of COVID-19 on Bayer crop would be negligible unlike other most of the companies which are struggling during the pandemic.

Va Tech Wabag:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
206 WABAG /533269 1254.69 Water Treatment 12.44 2.00 212.72 0.82

 

VA Tech Wabag Ltd is focussed on water treatment for municipal and industrial users. The company has completed more than 6000 projects and is present across more than 30 Countries. Va Tech Wabag its expects revenues to cross Rs 3,000 crore in the next fiscal year which is slightly higher than its revenue of Rs 2,557 crore in FY20. Covid-19 has played spoilsport this year but the company is looking to further consolidate and expand its position as a total solutions provider in the water space. The company holds its highest ever order book of Rs 11,050 crores which comprises almost 4.5x of the topline, the company said. Some of the projects that the company has bagged include the National Mission for Clean Ganga Scheme (NMCG) to develop Sewage Treatment Plants (STP) of 150 MLD Capacity along with sewerage network of over 450 kms and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme to set up a 178 MLD drinking water treatment plant in Coimbatore. The pandemic has also provided an opportunity for players like Va Tech Wabag with further impetus being laid on hygiene and increased water usage for the same and would rely on technology and digital adoption to capitalise on the emerging opportunities in water treatment.

Endurance Technologies:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
1327 ENDURANCE/540153 18913.53 Auto Ancillaries 140.66 10.00 227.10 0.54

 

Endurance Technologies Ltd is engaged in manufacturing of Aluminium die castings (including alloy wheels), suspension, transmission, braking Systems and After market products. In Q2FY21,Company’s consolidated EBITDA grew by 5.9% from Rs.302.5 Crore to Rs.320.3 Crore.The consolidated ROE was 19.2% and ROE was at 18.5%. This is a result of better cost control – on material costs and fixed costs, as well as a better product mix. In India, Endurance is entering two backward integration product areas, which are import substitutes also. First is the aluminum forging axle clamps required for growing business of inverted front forks. Company has also won Rs. 320 million of new business with Hyundai, which will start in October 2021 and will be supplied from the new Vallam plant in Chennai. The PLI scheme introduced by Govt. of India on 11th November 2020 is worth Rs. 1.46 lakh Cr out of which Rs. 57042 Cr. allocated to Automobile and Auto parts. The company would get benefit as government may introduce eligibility criteria to use 80% of the locally sourced parts in vehicle to get benefit under PLI scheme.

ICICI Securities:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
463 ISEC /541179 14676.74 Finance 161.11 5.00 45.69 0.87

 

ICICI Securities Ltd offeri a wide range of financial services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. It is one of the pioneers in the e-brokerage business in India. ICICIdirect is the company’s award winning proprietary electronic brokerage platform. ICICI Securities reported Revenue of Rs 680.45 crore in September 2020 up 63.21% from Rs. 416.91 crore in September 2019 driven by higher-than-expected investment banking revenue and interest income, coupled with in-line opex. Quarterly Net Profit at Rs. 277.99 crore in September 2020 up 107.61% from Rs. 133.90 crore in September 2019. Almost half the revenue comes from clients that have been with the company since the last decade. 16 senior RMs are supported by 300+ members, including Relationship, Product, Advisory, Service, and Family Office. Management od the company expects new client addition to strengthen as it has improved its digital client on-boarding infrastructure. ISEC has also launched new PRIME plan packs which seem to be attracting customers as adoption continued to increase. The Company drive 94-95% of its revenue from online business hence will be least impacted in this pandemic.

Chemcon Specialty Chemicals:

CMP NSE/BSE Symbol MCAP (Cr) Sector Equity (Cr) Face Value Book Value Beta-Sensex
455 CHEMCON/543233 1596.37 Chemicals 36.63 10.00 85.00 0.54

 

Chemcon Specialty Chemicals manufacture specialized chemicals, such as HMDS and CMIC which are predominantly used in the pharmaceuticals industry and inorganic bromides, namely Calcium Bromide, Zinc Bromide and Sodium Bromide, which are predominantly used as completion fluids in the oilfields. Company is the only manufacturer of HMDS in India and was the third largest manufacturer of HMDS worldwide in terms of production in the calendar year 2019. For Fiscals 2020, 2019 and 2018, revenue from operations was ₹ 2,620.52 million, ₹3,033.41 million and ₹1,576.42 million, respectively, growing at a CAGR of 28.93% between Fiscal 2018 and Fiscal 2020. The key customers of Pharmaceutical Chemicals include Hetero Labs Limited, Laurus Labs Limited, Aurobindo Pharma Limited, Sanjay Chemicals (India) Private Limited, Lantech Pharmaceuticals. Chemcon supplies its products to domestic customers and also exports to countries including USA, Italy, South Korea, Germany, China, and Japan. As of July 31, 2020, the installed capacity for HMDS was 4,200 MT per annum and HMDS (hi-purity) was 600 MT per annum. India is a net importer of CMIC and HMDS and the company aims to expand manufacturing and sales operations of CMIC and HMDS to substitute such imports.


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